New Week’s Wheat Trade Fading

Wheat prices are trading double digits lower ahead of StatsCan data this morning. Nearby wheat futures rallied double digits going into the weekend. For the CBT contracts that amounted to 1.95% to 2.2% gains of as much as 17 3/4 cents. For the week, the December contract was 34 1/4 cents higher. KC wheat futures closed 1.6% to 2% in the black on Friday with December up 35 1/4 cents wk/wk. Minneapolis spring wheat futures closed with 1.3% to 1.8% gains in the front months, solidifying a 22 1/2 cent gain for December to back above the $9 mark. 

Weekly Commitment of Traders data showed managed money firms were reducing their long exposure and adding to their shorts for a 7,962 contract stronger net short through the week. The group was 26,069 contracts net short SRW as of 8/23. In KC wheat futures and options, managed money was 9,425 contracts net long. That was up 1,905 contracts through the week reflecting net new buying. Spec funds were shown adding HRS shorts through the week for a 707 contract stronger net short of 1,464 contracts. 

Traders are looking for Stats Can wheat production of 34 MMT. Last year Canada produced 21.6 MMT during a drought. Spring wheat is expected to make up 25.4 MMT of the total with 6 MMT of durum. 

Sep 22 CBOT Wheat  closed at $7.84 3/4, up 15 cents, currently down 7 1/2 cents

Dec 22 CBOT Wheat  closed at $8.05 1/4, up 16 1/4 cents, currently down 9 1/2 cents

Cash SRW Wheat  was $7.26 7/8 on Friday, up 13 1/2 cents,

Sep 22 KCBT Wheat  closed at $8.83 1/4, up 14 1/4 cents, currently down 8 cents

Cash HRW Wheat  was $8.39 7/8 on Friday, up 15 1/2 cents,

Sep 22 MGEX Wheat  closed at $8.94 1/2, up 11 3/4 cents, currently down 8 1/4 cents,